The Administration strongly opposes H.R. 391, which would waive fines for
first-time violators of Federal information collection requirements. The
waiver provision could seriously hamper agencies' ability to ensure safety,
protect the environment, detect criminal activity, and carry out a number
of other statutory responsibilities. If H.R. 391 were presented to the
President in its current form, the Attorney General, the Secretary of
Labor, the Secretary of Transportation, and the Administrator of the
Environmental Protection Agency would recommend that he veto it.

Because current law already requires agencies to help first-time small
business violators who make a good faith effort to comply, the primary
beneficiaries of H.R. 391 would appear to be those who do not act in good
faith, and those who intentionally or willfully violate the applicable
regulations. The Administration understands that Representative Kucinich
is planning to offer an amendment that is intended to address the
Administration's concerns. The Administration supports efforts to address
its concerns, but will continue to object to amendments that would
undermine agencies' ability to carry out their many different statutory
responsibilities or that would impose unnecessary and burdensome
administrative requirements.

The Administration is also concerned about the provision prohibiting States
from imposing a civil penalty on requirements "regarding collection of
information under Federal law." This provision could create questions
about States' ability to enforce State laws that implement Federal
statutes. Neither the Federal agencies nor the State Attorneys General
have had an opportunity to evaluate whether this provision could unduly
limit State law enforcement discretion or to offer their views concerning
the Federalism implications of this provision.

The Administration is further concerned about a provision that would
require OMB to publish annually a list of all Federal collections of
information requirements applicable to small-business concerns organized by
North American Industrial Classification System code. While the
Administration has no objection to agencies facilitating the ability of
small businesses to know what is required of them, it believes there are
more constructive ways to meet this objective.